Poker machine numbers to be capped in NSW's most disadvantaged areas

The growing billions of dollars fed through poker machines in NSW’s most disadvantaged suburbs will be capped in what the state government says is the most significant reform to slow problem gambling in more than a decade.

About 20 per cent of the state, including its most socially disadvantaged areas and those with the highest levels of problem gambling, will have numbers of poker machines frozen in a reform the government hopes will arrest growing problem gambling hot spots across the state.

“This is the biggest reform we’ve seen in a decade,” said Minister Paul Toole. “These reforms are going to focus regulations on high-risk areas.

A map shows high-risk areas for problem gambling and social disadvantage (shaded red) in Sydney where new poker machine licences will be frozen under reforms introduced by the state government.Credit:NSW Department of Industry

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The changes will remake the Local Impact Assessment scheme the government uses to determine applications for new machines, with about twice as much weight given to an area’s socio-economics, as defined by the ABS’ SEIFA Index, which measures the number of non-native English speakers as well as weekly income.

But critics of the plan say it does not go far enough to reduce the amount problem gamblers can bet or to reduce the total number of machines in the state.

Fairfield has consistently topped the list of local government areas when measured by the amount wagered; residents put $8.4 billion through the area's gaming machines last calendar year.

That is growth of 20 per cent on $6.99 billion wagered in 2013/14. The council area's population grew by 2 per cent in the same time.

Experts estimate half of all money lost on poker machines in NSW is by people with an addiction to gambling.

But Greens MLC and spokesman on problem gambling Justin Field said the announcement was misleading the community because only a policy that reduced, not froze, machine numbers would address problem gambling.

“These measures don’t stop the addictive features that exploit people, they don’t rein in predatory behaviour from clubs and hotels to maximise profits and they don’t keep people and communities safe,” he said.

“Any pokies plan that fails to rapidly reduce the total number of machines in NSW continues to lock in increasing harm to people and communities”.

The government is changing how applications for poker machine increases are assessed with the aim of freezing numbers in places with the most problem gambling.Credit:John Woudstra

But Mr Toole said the changes, contained in legislation introduced to the NSW lower house on Tuesday, would include a leasing scheme to encourage hotels that wished to go pokie free and ensure that clubs’ contribution to local community funds supported responsible gambling initiatives.

There will be increased fines for wagering operators with up to ten-fold increases in fines for operators caught offering illegal inducements to gamblers.

“We will modernise the regulation of casinos and we will bolster measures to address problem gambling,” Mr Toole said.

Wagering on poker machines by NSW gamblers grew by more than $1.3 billion last year.

On a per capita basis Fairfield loses $2300 for each resident compared to $1600 to Canterbury-Bankstown in second place in 2017.

In NSW, gambling losses reached a peak of more than $1250 per person in 2005 and have steadily declined since to reach a little more than $950 in 2015.

The new regulations will apply to divisions of the state smaller than suburbs or council areas but instead to ABS-defined statistical areas of between 3000 and 25,000 people.